Cryptocurrency investors saw a much-needed respite on Tuesday despite the Securities and Exchange Commission (SEC) filing lawsuits against Binance and Coinbase COIN. Major cryptocurrencies experienced a noticeable spike, shedding off some of the selling pressure that had engulfed the market in recent weeks.
| Cryptocurrency | Gains +/- | Price (Recorded 9:30 p.m. EST) |
| Bitcoin BTC/USD | +5.60% | $27,079 |
| Ethereum ETH/USD | +4.80% | $1,879 |
| Dogecoin DOGE/USD | +4.87% | $0.069 |
What Happened: Bitcoin, the world’s biggest cryptocurrency by market capitalization has recently broken the $27,000 mark and continues to trend upward, despite the SEC’s announcement of a second lawsuit against Coinbase, a direct competitor of Binance.
Additionally, the SEC has filed a request with a Federal court to freeze assets connected to Binance.US.
Investors can take comfort in the fact that the SEC did not mention BTC and ETH in their filings against these two exchanges, indicating that U.S. regulators recognize both tokens as commodities.
Top Gainer (24 Hour)
| Cryptocurrency | Gains +/- | Price (Recorded 9:30 p.m. EST) |
| Stacks | +16.32% | $0.62 |
| Pepe | +13.73% | $0.000001153 |
| Optimism | +7.48% | $1.48 |
At the time of writing, the global crypto market capitalization stood at $1.13 trillion, an increase of 3.93% over the last day.
On Tuesday, the S&P 500 closed at its highest level since the beginning of 2023, following a recent rally that pushed the broad index to its highest level in nine months.
The S&P 500 saw a modest gain of 0.24% and marked the highest close for the broad-market index since August 2022. The Nasdaq Composite also climbed, adding 0.36%.
However, Coinbase faced a setback as its shares fell more than 12% after the SEC sued the crypto company for allegedly acting as an unregistered broker and exchange.
See More: Best Crypto Day Trading Strategies
Analyst Notes: "The SEC looks like it is playing Whac-A-Mole with crypto exchanges. The first crypto exchange to get the regulatory hammer was Binance, the world's largest crypto exchange. The next crypto exchange to get hit with an SEC lawsuit was Coinbase and it seems like this is just the beginning. " said Edward Moya, Senior Market Analyst at OANDA.
Moya added, "Bitcoin is becoming an interesting trade here as many crypto investors might just decide to give up on most altcoins and stick with what has worked best since cryptos were created."
Crypto analyst Michaël van de Poppe predicts a potential return to $27K for Bitcoin, followed by a promising bounce back from the 200-Week MA. As the market sentiment turns bullish, he envisions the beginning of a new uptrend leading Bitcoin to reach $38-42K.
According to pseudonymous cryptocurrency analyst Kaleo, Bitcoin has quickly rebounded to pre-lawsuit levels after the recent announcement from Binance and doesn’t appear to be slowing down any time soon. The latest projections suggest that it will reach $30,000 in the near future.
Read Next: Jim Cramer Advises Against Using Binance, Provokes Strong Reactions From Twitter Users
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